The Reserve Bank of India (RBI) referred to Para 105 of Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 wherein certain criteria have been prescribed for notification of HFCs as ‘Financial Institution’ under Section 2(1)(m)(iv) of the SARFAESI Act, 2002.
In this connection, the Government of India (GoI) has, vide its Gazette Notification No. S.O. 2405(E) dated June 17, 2021, notified the HFCs registered under Section 29A(5) of the National Housing Bank Act, 1987 and having assets worth ₹100 crore & above, as ‘Financial Institution’ under Section 2(1)(m)(iv) of SARFAESI Act, 2002. In view of the revision of the criteria for notification as ‘Financial Institution’ as per the above mentioned Gazette notification of GoI, the criteria prescribed under Para 105 of the aforesaid Master Direction are withdrawn with immediate effect.
The Master Direction – Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021 is being modified accordingly.
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